Say the prospect is a mobile home park, 100 units, priced at $3MM. If you are not bringing any money into the deal yourself and are solely for management. You're relying on the investor for capital. And how does one go about this?
*For the sake of the invaluable inputs you have to offer let's exclude the small details (Ex: Cap Rates)*
No rules. It's just what you can negotiate. That said, I know one investor and 'laborer' who worked out an even 50%/50% split of all profits. Profits are any rents plus any capital gain. (e.g. if the property was sold at the price they paid for no gain, then the investor got his money back; that part was not split 50%/50%).
Good luck to you!
@Jefferson Lilly Great answer buddy thanks!
Follow up question (5 years later): If I have an investor, do I have to get a RE license? Does this depend on who's name the tittle is in?
It depends, you need to add more detail about this transaction. I am a Realtor, and in the states that I have worked in you must be licensed to receive any money in a transaction unless you are the property owner or a business that provided some service like inspections, repairs, surveys, ...etc. :)